Cut GST on life insurance premium to make it affordable

Tribune News Service

Vijay C Roy

Chandigarh, January 25

The services sector expects that the focus of the Budget 2023-24 should be on accelerating growth post-Covid and further strengthening the insolvency code to reduce timelines. Let’s have a look what they expect:

Insurance industry

The penetration of insurance remains low and the mass market is still under-insured. Recognising insurance as a critical protection need and a long-term investment, the government should provide a separate tax exemption slab for insurance. Also, reducing the 18% GST on life protection premium would make insurance policies more affordable for masses, said Casparus JH Kromhout, MD & CEO, Shriram Life Insurance.

Non-banking financial cos

The NBFCs are hopeful that the guarantee cover under the Credit Guarantee Fund Trust for Micro and Small Enterprises scheme will be restored to 75%. Besides, more efficient norms are needed for the Emergency Credit Line Guarantee Scheme as it plays a crucial role in preventing loans from slipping into NPAs, says Vikas Singh, CEO and co-founder, Sugmya Finance (P) Ltd.

Stock broking sector

The government shouldn’t take any decisions that could disrupt the market, as it did in the past when it announced a long-term capital gains (LTCG) tax. Since investors are already paying a sizable amount of tax in terms of STT, the LTCG tax should be reversed to boost investment optimism, says Parth Nyati, founder, Tradingo.

Hospitality industry

According to hoteliers, the government should allow business losses to carry forward for 12 years from the current eight years. Also, tax holiday for a minimum of two years should be given as the sector suffered losses due to the Covid. They have also sought an infrastructure status for the hotel industry.

Charging services provider

The government should relook at tax and tariff policies not only on EVs but also on related component requirements. The EV infrastructure needs to be classified as an asset that gives it the necessary impetus towards institutional financing, says Akshit Bansal, founder & CEO, Statiq.

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